The native token of Ripple Labs, XRP, is showing positive signals as on-chain indicators, technical analysis, and whale activity suggest bullish signs. Recently, Whale Alert – a company specializing in tracking large transactions – reported that 22.08 million XRP tokens worth $46.13 million were transferred from Binance to an unidentified wallet.
Whale activity and on-chain movements
This large transaction occurs amid a challenging period for the cryptocurrency market, with significant declines in many assets. However, withdrawing a large amount of XRP from the Binance exchange can be understood as a 'buying the dip' move from large investors.
Data from Coinglass shows that long-term investors and whales remain steadfast, not selling off their holdings of XRP on exchanges. Additionally, the inflow and outflow of funds from exchanges reveal that XRP has seen a withdrawal flow of $139.5 million in the past three days. Despite the price decline on December 10th, the withdrawal flow has still outperformed the inflow, highlighting the accumulation trend among long-term investors.
In the cryptocurrency industry, outflow – the transfer of assets from exchanges to personal wallets – is often seen as a bullish signal. This reflects confidence in the long-term price increase potential and reduces selling pressure in the market.
Technical analysis and price outlook
On the daily chart, XRP is forming a potential bullish pattern, indicating that the upward momentum may continue. Currently, XRP is holding above an important support level at $2 and facing light resistance at $2.45.
If the price breaks through this resistance level and closes the daily candle above $2.5, XRP is likely to increase an additional 60%, reaching $4.2. Conversely, if market sentiment shifts to a bearish trend, the price of XRP could adjust downwards by about 18%.
Current situation
At the time of writing, XRP is trading near $2.40, with an increase of over 20% in the past 24 hours. However, trading volume during the same period has decreased by 8%, indicating a slight reduction in participation from traders and investors.
Conclusion
Whale activity and technical indicators all suggest that XRP may be ready for a strong bullish rally. However, breaking through the current resistance levels will be a decisive factor for the next direction of this asset. Investors should continue to monitor market signals to develop appropriate strategies.
